Which is the better investment - the real estate or gold?
Posted on: 23/Mar/2018 11:47:04 AM
The fatal attraction that Indians have for gold will never come down. In the long traditional Indian History, the strong prevalent status is that owning a lot of gold jewellery is a symbol of high and wealthy status.
However, the recent fluctuating trend in gold prices has set a trend of thought whether it is wise to invest in gold.
Hence, in recent times, most Indians prefer that investment in real estate is a better option as compared to investing in gold.
So, the question arises which investment is better. How?
Initial expense
The 1st factor for this decision depends on your investment budget.
A larger amount will be generally required in investment on real estate – plot/land/house/flat. While going for this, the general practice is to arrange the 1st 20% of the amount as an advance payment while arranging a loan for the balance.
On the other side, only lesser amount of money is required for investment in gold.
The avenue of profit
As for the profit to be earned while investing in real estate, while renting the house, the rent earned is the profit avenue. However, the profit earned in gold investment will depend on the market price fluctuations.
Thus, for those who look for long-range benefits, investment in real estate is better. For the short-term benefit, investment in gold is better.
The nature of investment
The investors who propose to invest larger sums of money will have to duly consider the fluctuations. In this aspect, the investment in real estate is more reliable.
Re-conversion into cash
Another factor while investing is whether this can be reconverted into cash at the required time. In this aspect, the prospects of ready conversion are rather remote in the real estate investment. On the other hand, investments in gold and stock market can be reconverted into cash in quick time.
Impact on economy
Gold is imported from other countries. When importing gold from richer countries, the value of Indian Rupees goes lower. This leads to the prices increase of essential commodities and fuel.
So, large investments in gold are considered as a counter against the Indian Economy. On the other hand, the investment in real estate really strengthens the Indian Economy.
